Advertising Cost of Sales (ACoS)

Advertising cost of sales (ACoS) is the percentage of direct sales you made
from Sponsored Products ads, or the overall brand sales you made from Sponsored Brands that
resulted from your advertising campaign. This is calculated by dividing total ad spend by
total sales from advertising.

ACoS = total ad spend ÷ total ad sales x 100

For example, if you spent $2 on advertising and those ads resulted in
sales of $20, your ACoS would be 10%.

How to use ACoS

For Sponsored Products campaigns, your total sales consist of product sales generated
within one week of clicks on your ads. This total includes both sales of the advertised
SKU as well as sales of the other SKUs in your inventory. For example, if a click on
your ad for a blue shirt generates a sale for one of your red shirts, this is included
in total sales.

For Sponsored Brands, total sales consist of the product sales generated
by ad clicks in two weeks. This total includes sales of the advertised products as well
as sales of other products within the same brand that resulted from clicks on your ads,
regardless of whether they were or sold by you or by others. Learn more about brand sales

For example, let’s say you have a brand that sells athletic equipment.
You may find that your Sponsored Brand for your new running shoe collection has also
generated sales for your socks and workout clothing that was sold by other
advertisers.

Note: For Sponsored Products campaigns, your sales data can take up to 48
hours to populate. For Sponsored Brands, brand sales data can take up to 12 hours to
populate. As a result, ACoS is not available in the “Today” date range and might be
delayed in the “Yesterday” date range.

ACoS recommendations by campaign targeting
type

To minimize your spend on advertising, you’ll want to lower your ACoS. If your goal is
to increase exposure of a new or existing SKU, you might be okay with a higher ACoS for
a set period of time.

Targeting Type

Low-Performing Campaigns

Top-Performing Campaigns

Manual targeting

Consider lowering bids or
pausing specific keywords that have a high ACoS.

Consider adding more
keywords to see if they can improve campaign performance.

Consider increasing your
campaign budget.

Review your list of keywords
and identify the top performers. Increasing your bid on top performing
keywords may generate additional impressions, clicks, and sales.

Automatic targeting

Consider adding negative
keywords for search terms that have a high ACoS. You can see search
terms by ACoS in the Search
Term Report.